Würzburg, August 11, 2008
Persistently high energy prices are making consumers less willing to spend. This is also being felt by companies in the automotive industry. Only 8 percent of contractually bound business owners rate the economic situation in the industry as "good", while 44 percent rate it as "bad". This was the result of a survey conducted by the Bank Deutsches Kraftfahrtzeuggewerbe (BDK) and the trade journal "kfz-betrieb".
Around 40% of the brand companies surveyed recorded lower total sales in July compared to the same month last year. The vehicle trade has been particularly hard hit by consumers' reluctance to buy: a good 56% of companies recorded falling revenues in the new vehicle business. Every second authorized dealer is also complaining about lower turnover in the sale of used vehicles.
Slump in sales in the service business
In addition, the respondents assess the development in the vehicle trade as worse than in the previous month: 60 percent (June: 40 percent) expect revenues in new car sales to fall in the coming month. VDA President Matthias Wissmann fears that if fuel prices remain at the current high level, this will result in a loss of purchasing power of twelve billion euros for 2008 as a whole.
Car manufacturers' contract partners are also increasingly concerned about the workshop business. A good third of them are expecting a slump in turnover in servicing and the sale of spare parts and accessories in the coming month. The owners of authorized service companies in eastern Germany are particularly pessimistic: around half are forecasting falling workshop turnover and only 4 percent are expecting higher turnover than in the same month last year.
Gregor Ries, Sales Director at BDK, explains: "There is no way to sugarcoat it: The mood in car dealerships has fallen. At brand-name car dealerships, it has even fallen to its lowest level so far this year. The summer slump is clearly noticeable. For the first time this year, the industry index for contractors is below the previous year's level. This is also confirmed by the sales figures, which have fallen for more than half of the companies compared to the previous year. One thing is clear: the sector needs effective instruments and opportunities to improve its situation. This is not just a matter for politicians, but also for every entrepreneur."
Vehicle sales remain the problem child of contract-based companies. The majority of authorized dealers are also forecasting falling new vehicle sales for the coming month. It is striking that half of the owners of independent service companies expect declining revenues in the workshop business.
You can find the BIX archive at www.kfz-betrieb.de/Studien and statistics.
"kfz-betrieb" is a trade magazine published by Vogel Auto Medien, Würzburg. The most widely read trade magazine in the automotive industry has been informing the automotive trade and service sector for 97 years. "kfz-betrieb" is the official organ of the German automotive trade (ZDK), the professional lobby for over 40,000 car dealerships and workshops. Daily news from the entire automotive industry can be found at www.kfz-betrieb.de and in the daily newsletter.
If you have any questions, please contact
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Editorial office "kfz-betrieb" weekly journal & online
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